Fed's Musallem: The economy is expected to continue to grow, but risks are seen from recent data

Odaily News St. Louis Fed President Musalem said the U.S. economy is expected to continue to expand this year, but recent weaker-than-expected consumer and housing data and reports from business contacts have raised concerns that economic growth may be at risk. He said: "The outlook for continued solid economic growth is good, the labor market is healthy, and financial conditions are supportive. But recent data have been weaker than expected, with some signs that business activity has slowed, or at least that some companies are more cautious." He said that for now he believes that the current monetary policy is "moderately restrictive," which is an appropriate setting considering that inflation is still above the Fed's 2% target. "More monetary policy work is needed to achieve price stability." He agreed with the Fed's current "patient" attitude toward further interest rate adjustments. (Jinshi)